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HomeMy WebLinkAboutMINUTES - 12042012 - SD.3RECOMMENDATION(S): CONSIDER and ACCEPT a semi-annual report of the County's Small Business Enterprise program, reflecting the level of participation in County contracting opportunities for registered Small Business Enterprise (SBE) firms in accordance with County policies, for the semi-annual reporting period January 1, 2012 through June 30, 2012, as recommended by the County Equal Employment Opportunity Officer. FISCAL IMPACT: None. BACKGROUND: In August 1998, the Board of Supervisors adopted the Outreach Program to promote broad outreach to all businesses, including minority business (MBE), women (WBE), disabled veteran (DVBE), small (SBE), local (LBE), and other (OBE) business enterprises. In December 13, 1999 the Board approved the Small Business Enterprise (SBE) Program for the purpose of providing small businesses a larger proportionate share of County business and contracting opportunities. As a result of recent program amendments, the SBE Program currently applies to County construction contracts, professional/personal services contracts, and purchasing contracts in amounts of $100,000 or less, APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/04/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Vicky Mead, 925-335-1907 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 4, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD. 3 To:Board of Supervisors From:David Twa, County Administrator Date:December 4, 2012 Contra Costa County Subject:Consideration of Small Business Enterprise Program Semi-Annual Report for January 1 to June 30, 2012 BACKGROUND: (CONT'D) except for certain transactions that are exempt from the program. The goal of the SBE program is that 50 percent of each department's contracts and transactions that are included in the program (i.e. all transactions in amounts under $100,000) will be awarded to certified small businesses that have previously registered with the County. In adopting the SBE Program, the Board directed the County Administrator to work with County departments to implement the Program and referred the Program to the Internal Operations Committee (IOC) for continuing policy oversight and development of recommendations for program changes, if warranted. For example, in 2006, at the IOC's recommendation, the Board exempted certain limited categories of purchases and services for which departments could not achieve SBE Program goals due to the specialized nature of the transactions and the limited number of providers of those goods and services. The IOC has provided policy oversight on the both Programs since their inception, including surveying County departments on the implementation of the SBE and Outreach Programs and overseeing the progression to electronic web-based outreach. The Affirmative Action Officer has historically provided semi-annual status reports (twice annually) to the Internal Operations Committee (IOC) on departmental contracting activity with SBEs. Following the retirement of the County's long term Affirmative Action Officer in Spring 2011, the work responsibilities and critical functions of the position were temporarily assigned to the Assistant Human Resources Director as the Interim Affirmative Action Officer, with staff support from the County Administrator's Office. The County has recently retained the services of its new Equal Employment Opportunity/Affirmative Action officer, Mr. Antoine Wilson, who will assume oversight of the program. On October 8, 2011 the IOC reviewed and accepted the attached report from the County Administrator's Office through the Interim Affirmative Action Officer, and directed staff to forward the report to the full Board of Supervisors for review and approval. The SBE Program Semi-Annual Report for the period January 1 to June 30, 2012 is therefore attached to this memorandum for review, consideration and approval by the Board of Supervisors. CONSEQUENCE OF NEGATIVE ACTION: The Small Business Enterprise (SBE) Program Semi-Annual Report for the period January 1 to June 30, 2012 would not be accepted by the Board. CHILDREN'S IMPACT STATEMENT: none ATTACHMENTS SBE Program Semi-Annual report Jan-June 2012 County of Contra Costa OFFICE OF THE COUNTY ADMINISTRATOR MEMORANDUM DATE: October 3, 2012 TO: Internal Operations Committee Supervisor Karen Mitchoff, Chair Supervisor Candace Andersen FROM: Vicky Mead, Senior Management Analyst, CAO THROUGH: Deborah Preston, Assistant Human Resources Director, and Antoine Wilson, Equal Employment Opportunity Officer SUBJECT: Small Business Enterprise & Outreach Program Semi-Annual Report For the period January 1 through June 30, 2012 RECOMMENDATION: ACCEPT this Semi-Annual SBE and Outreach Programs Report, reflecting departmental program data for the period January 1 through June 30, 2012. BACKGROUND: Data has been collected from departmental “Small Business Enterprise” (SBE) Liaisons for inclusion in the attached reports. Departmental liaisons are responsible for compiling departmental data of two kinds: (1) the total number and dollar amount of all transactions that are less than the program threshold1 (separated by type into personal services, construction, and purchasing transactions) that the department has entered into, amended, or renewed in the reporting period; and (2) identification of the number and 1 The percentage of contracts awarded to SBEs is calculated as a percentage of all contracts that fall within the ‘program threshold.’ During 2011, the threshold included all construction and services contracts less than $50,000, and all purchasing transactions less than $25,000. For 2012 the threshold has been raised to $100,000. All contracts awarded by the department that are under the threshold are evaluated for SBE participation rates. SBE Program Report – Internal Operations Committee – October 3, 2012 (revised 11/24/12) Page 2 dollar amount of personal services, construction, and purchasing transactions that were awarded to Small Business Enterprise (SBE) firms. In addition, outreach data for many small departments and for commodities less than $10,000 is maintained and provided through the Purchasing Division of the General Services Department reflecting outreach to small, women, minority-owned, local, disadvantaged and/or other business enterprises. By comparing the total number and total dollar amount of transactions that were awarded to the different types of firms with (dividing by) the number and total amount of contracts awarded that were under the $100,000 program threshold, the percent share of all transactions (both number and dollar amounts) that have been awarded to SBE firms has been quantified. 2 Transactions falling within the threshold are considered to reflect the optimal opportunities for outreach to and economic participation by small, local, minority, women’s, veterans, or disabled business enterprises. For the current reporting period the threshold amounts have been: transactions of $100,000 or less for personal services and purchasing transactions, and $100,000 or less for construction-related contracts. In September 2012, the County retained a new Equal Employment Opportunity Officer, Mr. Antoine Wilson, who will provide long-term oversight and direction for this program. Mr. Wilson has reviewed this report but has not participated directly in its preparation. Mr. Wilson has discussed with CAO and Human Resources the possibility of conducting additional training in SBE requirements and procedures for SBE departmental coordinators during 2012 or 2012, which will provide an opportunity also to receive feedback and suggestions from the coordinators about potential program improvements. This process is anticipated to introduce improvements and efficiencies in data collection and reporting and to produce more reliable and useful data. 2 Departments maintain data on Local Business Enterprise (LBE), Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Disabled Veteran Business Enterprise (DVBE), and/or Disadvantaged Business Enterprise (DBE) firms but the recent focus in reporting has been on the rates of participation of local small businesses in the County’s contracting opportunities. SBE Program Report – Internal Operations Committee – October 3, 2012 (revised 11/24/12) Page 3 Results for the Period January 1 to June 30, 2012 Business Enterprise Participation Rates Tables 1-3 attached to this report present statistics showing the proportion of contracting, purchasing, and construction services that were transacted through Small Business Enterprises, taking as a base all transactions less than $100,000 in each category. The data reflect that County Departments have made significant efforts to support the County’s Small Business Enterprise (SBE) goals and Outreach Program target of achieving 50 percent participation by SBE firms among the transactions under the threshold. The total activity County-wide in this period for all three categories together (i.e. the sum of the data in the three separate tables) is as follows: Type of contract Total contract awards under threshold SBE awards Percent Share SBE Amount No. Amount No. Amount No. Personal Services 6,385,650 404 3,701,702 205 58% 51% Purchasing 1,506,923 718 692,334 259 46% 36% Construction 65,560 1 65,560 1 100% 100% Grand Total 7,958,133 1,123 4,459,596 465 56% 41% This table reflects the total reported contracting activity by the departments (for all contracts within the SBE program threshold of “less than $100,000”) for the period January 1 to June 30, 2012, and the percent share of the total that was awarded to SBE firms, in terms of dollar amounts, and percentage of the total, for each category. Departmental Outreach In addition to actual participation rates by the different business enterprises, the departments track and report on outreach activities describing the extent to which information about business opportunities has been distributed to small, local, minority, women’s, veterans, or disabled business enterprises that were conducted by departments in this period. Table 4 summarizes the data that was reported by departments concerning outreach to the different types of business enterprises in the reporting period. Purchasing Outreach In addition to departmental outreach, the Purchasing Division of the General SBE Program Report – Internal Operations Committee – October 3, 2012 (revised 11/24/12) Page 4 Services Department provides purchasing services and significant “electronic outreach” to the different business enterprises. Table 5 presents the results of the Purchasing Division’s “E-outreach” program to the different business enterprises in this period. Highlights of these data include: Small Business Enterprise Program  Professional/Personal Services (Table 1) - Approximately $3.7 million was awarded to SBEs through personal or professional services contracts, representing 58 percent of total contract dollars for such services of approximately $6.4 million. Ten departments reported that they met or exceeded the 50% SBE contracting goal for this period for personal services contracts – an increase of three departments that met the goal since the last reporting period.  Purchasing (Table 2) – A total of $692,334 was reported as awarded to SBE firms, or 46 percent of all purchasing transactions under the threshold, which totaled $1,506,923. Five departments reported that they exceeded the 50 percent participation target for SBE firms, an increase of two over the three departments so reporting in the last period.  Construction (Table 3) – Most departments did not report any construction activity of less than $100,000 falling within SBE program thresholds. Outreach Program (Tables 4, 5) Tables 4 and 5 present the results of specific outreach activities directed to all of the different types of business enterprises under the County’s Outreach Program. The data reflect that:  Professional/Personal Service Contracts – As shown in Table 4, individual departments together performed outreach or had contact with a total of 1,538 MBE, WBE, SBE, LBE, and DBE firms in connection with contracting opportunities of approximately $4.7 million for professional or personal services transactions.  Purchasing Activity –Individual departments together performed outreach or had contact with a total of 190 MBE, WBE, SBE, LBE, and DBE firms in connection with contracting opportunities of approximately $223,730 for purchasing transactions. SBE Program Report – Internal Operations Committee – October 3, 2012 (revised 11/24/12) Page 5  Purchasing (E- Outreach) – As shown in Table 5, data provided by the Purchasing Division of the General Services Department reflect that an estimated 11,754 different business enterprises were notified of County contracting opportunities through the Purchasing Division’s “electronic outreach” program, including 7,394 SBE firms and 348 Local Business Enterprises (LBEs). The number of notifications made to other types of enterprises were 1,508 to MBE, 1,150 to WBE, 522 to DVBE, and 1,050 to DBE firms. In response to County opportunities, Table 5 also reflects that a total of 1,174 business enterprises of the various kinds responded to County contracting opportunities totaling approximately $10.2 million through this effort. Amended and Renewed Contracts County departments continue to monitor the number of amended and renewed contracts in each SBE and Outreach Program reporting period. In prior periods, the County Affirmative Action Officer has reviewed in detail the number of amended and renewed contracts that fall within the SBE and Outreach Program thresholds and has encouraged departments to perform outreach at least every three years for all such contracts that are amended or renewed. Due to the retirement of the previous County Affirmative Action Officer in March 2011, the level of this monitoring activity has declined. The County’s new Affirmative Action/Equal Employment Opportunity Officer, Mr. Antoine Wilson, will begin to collaborate with departments to strengthen SBE outreach as well as outreach to other business enterprises, and to incorporate such outreach in amended and renewed contracts. RECOMMENDATION(S): CONSIDER and ACCEPT a semi-annual report of the County's Small Business Enterprise program, reflecting the level of participation in County contracting opportunities for registered Small Business Enterprise (SBE) firms in accordance with County policies, for the semi-annual reporting period January 1, 2012 through June 30, 2012, as recommended by the County Equal Employment Opportunity Officer. FISCAL IMPACT: None. BACKGROUND: In August 1998, the Board of Supervisors adopted the Outreach Program to promote broad outreach to all businesses, including minority business (MBE), women (WBE), disabled veteran (DVBE), small (SBE), local (LBE), and other (OBE) business enterprises. In December 13, 1999 the Board approved the Small Business Enterprise (SBE) Program for the purpose of providing small businesses a larger proportionate share of County business and contracting opportunities. As a result of recent program amendments, the SBE Program currently applies to County construction contracts, professional/personal services contracts, and purchasing contracts in amounts APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/04/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYES 5 NOES ____ ABSENT ____ ABSTAIN ____ RECUSE ____ Contact: Vicky Mead, 925-335-1907 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 4, 2012 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD. 3 To:Board of Supervisors From:David Twa, County Administrator Date:December 4, 2012 Contra Costa County Subject:Consideration of Small Business Enterprise Program Semi-Annual Report for January 1 to June 30, 2012 BACKGROUND: (CONT'D) of $100,000 or less, except for certain transactions that are exempt from the program. The goal of the SBE program is that 50 percent of each department's contracts and transactions that are included in the program (i.e. all transactions in amounts under $100,000) will be awarded to certified small businesses that have previously registered with the County. In adopting the SBE Program, the Board directed the County Administrator to work with County departments to implement the Program and referred the Program to the Internal Operations Committee (IOC) for continuing policy oversight and development of recommendations for program changes, if warranted. For example, in 2006, at the IOC's recommendation, the Board exempted certain limited categories of purchases and services for which departments could not achieve SBE Program goals due to the specialized nature of the transactions and the limited number of providers of those goods and services. The IOC has provided policy oversight on the both Programs since their inception, including surveying County departments on the implementation of the SBE and Outreach Programs and overseeing the progression to electronic web-based outreach. The Affirmative Action Officer has historically provided semi-annual status reports (twice annually) to the Internal Operations Committee (IOC) on departmental contracting activity with SBEs. Following the retirement of the County's long term Affirmative Action Officer in Spring 2011, the work responsibilities and critical functions of the position were temporarily assigned to the Assistant Human Resources Director as the Interim Affirmative Action Officer, with staff support from the County Administrator's Office. The County has recently retained the services of its new Equal Employment Opportunity/Affirmative Action officer, Mr. Antoine Wilson, who will assume oversight of the program. On October 8, 2011 the IOC reviewed and accepted the attached report from the County Administrator's Office through the Interim Affirmative Action Officer, and directed staff to forward the report to the full Board of Supervisors for review and approval. The SBE Program Semi-Annual Report for the period January 1 to June 30, 2012 is therefore attached to this memorandum for review, consideration and approval by the Board of Supervisors. CONSEQUENCE OF NEGATIVE ACTION: The Small Business Enterprise (SBE) Program Semi-Annual Report for the period January 1 to June 30, 2012 would not be accepted by the Board. CHILDREN'S IMPACT STATEMENT: none